SPRRA119R0046_REDACTED_2.pdf

Solicitation Number: SPRRA1-19-R-0046

Source Selection Information - See FAR 2.101 & 3.104 Page 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for other than full and open competition supports requirements generated for the US Army Aviation and Missile Life Cycle Management Command (AMCOM). The contracting authority for this requirement is Defense Logistics Agency (DLA) Aviation – Tactical Aviation Division – Huntsville, Alabama, DLA-AVN-AHAA. The purchase request number supporting this contracting action is AX9F1500AX.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEINGPROCESSED

Due to the circumstances described herein, this activity requests authority to acquire the items/spares listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1(a)(2) a limited number of responsible sources, and no other type of supplies will satisfy agency requirements, full and open competition need not be provided for. This action will result in the award of a new contract, which will be a firm fixed price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract with basic year plus four year ordering period in which additional quantities may be ordered. The technical data package list (TDPL) indicates that this requirement could be solicited from the following approved sources:

TEK Precision Co., LTD PCX Aerostructures, LLC Sikorsky Aircraft Corporation 205 W Industry CT 300 Fenn Rd 6900 Main Street Deer Park, NY 11729-4605 Newington, CT 06111-2244 Stratford, CT 06614-1385

CAGE: 65780 CAGE: 82001 CAGE: 78286

Small Business Small Business Large Business A request for information (RFI) was submitted to TEK Precision, PCX Aerostructures, and Sikorsky Aircraft Corporation. The purpose of this RFI was to validate if the aforementioned sources could fulfill a five-year IDIQ contract, a shorter duration IDIQ contract (i.e., three years), or a one-time-buy contract for this requirement.

Based on the feedback received from this RFI, this requirement will be solicited as a sole source requirement from TEK Precision. The results of the RFI are discussed in further detail in Section VI of this document.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

The Government proposes a FFP five-year IDIQ contract, with a minimum quantity of 1040 and maximum quantity of 3525. The national stock number (NSN) of this part is 1615-01-141-7532.

Furthermore, the part number is 70400-06100-042. This NSN and part number is applicable to the Blackhawk (BE) weapon system. The estimated contract value ranges from a minimum of $ to a maximum of $ . Army Working Capital Funds (Reparable) will be used for this requirement.

NSN 1615-01-141-7532 NOUN QTY UNIT PRICE TOTAL PRICE

Year 1 Coupling Assy, Servo 1040 $ $

Year 2 Coupling Assy, Servo 622 $ $

Year 3 Coupling Assy, Servo 621 $ $

Source Selection Information - See FAR 2.101 & 3.104 Page 2

Year 4 Coupling Assy, Servo 621 $ $

Year 5 Coupling Assy, Servo 621 $ $

Total Potential Maximum Value

The Government will only be obligated to purchase the minimum quantity of 1040. The numbers reflected in the chart above are estimated amounts for the five-year IDIQ. However, these amounts are not guaranteed amounts. The 3525 maximum quantity represents the Government’s anticipated requirements for the entire five-year IDIQ period. The basis used for the unit price is derived from a producer price index (PPI) and quantity adjustment price analysis utilizing contract number SPRRA1-19-F-0032 for historical comparison.

The delivery schedule for year one is 40 units per month consecutively until the quantity of 1040 units is completely delivered.

The estimated production lead-time is 432 days after contract award (DACA) with first article testing (FAT) and 288 DACA without FAT.

The Aviation and Missile Research, Development Engineering Center (AMRDEC) Breakout Engineers have assigned this requirement the Acquisition Method Reason Code (AMRC) “1C.” This code restricts the manufacture of the item from only the approved sources. The approved sources have the unique design capability, engineering skills and manufacturing knowledge to produce the items.

Breakout Engineering has assigned Acquisition Method Code (AMC) “1,” which indicates that this requirement is “suitable for competitive acquisition for the second or subsequent time.” Furthermore, the Acquisition Method Suffix Code (AMSC) “C” indicates that “this part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s).”

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPENCOMPETITION

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2) a limited number of responsible sources, and no other type of supplies will satisfy agency requirements, full and open competition need not be provided for.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE

OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITEDABOVE

TEK Precision and Sikorsky Aircraft Corporation, are the only known firms approved to provide the supplies described in Paragraph III above without experiencing unacceptable delays in fulfilling its requirements. PCX Aerostructures, identified in section II above, was removed as an approved source based on their response to the RFI wherein they stated they no longer have the capability or technical date to produce this part.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM

AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement was synopsized on Federal Business Opportunities (FedBizOpps) 29 November 2018, as required by FAR 5.201, for 15 days before the issuance of a solicitation. The extent of the competition anticipated are the sources identified in paragraph II. In an effort to obtain maximum competition, the synopsis encouraged firms and suppliers that recognize and can produce the item described in paragraph III to identify themselves.

Source Selection Information - See FAR 2.101 & 3.104 Page 3

The synopsis encouraged firms/suppliers to seek source approval in order to compete for future solicitations by accessing the AMCOM Competition Management Office website and looking under Standardized Aviation and Missile Source Approval Request (SAMSAR). Improving the competitive status of acquisition includes review and screening under the procedures of the DOD Spare Parts Breakout Program, Defense Federal Acquisition Regulation Procedures, Guidance and Information (PGI) 217.7506.

A Sources Sought Synopsis (SSS), SPRRA1-19-R-0046, in support of market research was issued on 14 November 2018 by the Defense Logistics Agency to identify potential manufacturing/supply sources, and if future efforts can be competitive or set-aside for small business. The proposed North American Industry Classification Systems (NAICS) Code is 336413, which has a corresponding Size Standard of 1,250 employees. The SSS was to notify companies that the DLA Aviation, Huntsville, Alabama, was seeking qualified sources for the acquisition referenced in paragraph III. One additional source showed an interest in this requirement. The Contract Specialist encouraged Overhaul Support Services, LLC (CAGE 52VE4) to seek source approval in order to compete for future solicitations.

A request for information (RFI) was submitted to TEK Precision, PCX Aerostructures, and Sikorsky Aircraft Corporation. The purpose of this RFI was to validate if the aforementioned sources could fulfill a five-year IDIQ contract, a shorter duration IDIQ contract (i.e., three years), or a one-time-buy contract for this requirement. Furthermore, an addendum to this RFI was submitted to the contractors to collect insight regarding the best contract type for this requirement. Of significant note is that PCX Aerostructures responded to the RFI and informed the contract specialist that “PCX does not have capability or technical data to produce this part. We will not be able to respond to this opportunity.” A subsequent PAID action was submitted and approved to remove them as an approved source. Sikorsky responded and declined to offer on a competitive requirement. Consequently this procurement will be a sole source requirement to TEK Precision Co. LTD., a certified small business contractor. As TEK Precision is not a specialized small business a DD2579 was submitted to dissolve a small business set-aside in the absence of the expectation of competition between two or more small businesses.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COSTTO

THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government based on an analysis of certified cost or pricing data. Unless a waiver is justified and obtained, the sole source is required to provide the Government with certified cost and pricing data. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part

15. Therefore, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOTCONDUCTED

Market Research as defined in FAR 10.001 was conducted based on knowledge of individuals within the requirements community. This item was not published in Competition Advocate Shopping List (CASL). A SSS was posted on 14 November 2018 and Overhaul Support Services was identified as a potential candidate.

In the event that additional potential candidates identify themselves, the Source Approval Request (SAR) will be reviewed. Furthermore, it will be determined if the vendor’s technical capabilities meet the requirements to manufacture the item. It is anticipated that the procedures as prescribed by FAR Part 15 will be utilized for this procurement.

Source Selection Information - See FAR 2.101 & 3.104 Page 4

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL ANDOPEN

COMPETITION

The Technical Justification and Certifications (J&Cs) state full screening has been completed and that competition cannot be improved at this time due to a lack of sources. Re-screening will occur prior to the expiration date of the AMC/AMSC and no orders will be issued until after the AMC/AMSC has been re-validated. The AMSC expiration date is 10 July 2020. There are no pending SARs on this NSN.

The OEM is not willing to sell data rights to the Government, which means the technical data package specifications and engineering description suitable for full and open competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive.

The technical factors supporting the recommendation for other than full and open competitive acquisition are based on a review and analysis information residing in the Commodity Command Standard System National Stock Number Maintenance Data Record and the Aviation Acquisition Engineering Part Number files.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THEACQUISITION

A single entity, Overhaul Support Services, expressed interest in manufacturing this part. They were referred to the instructions for submitting a SAR package for future procurements. No additional sources showed an interest in this requirement.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT

ACQUISITIONS FOR THE SUPPLIES

Firms are encouraged to seek source approval in order to compete for future solicitations by accessing the website https://amcomdmz.redstone.army.mil/casl_cmo/casldba.casl_cmo_samsar and clicking on "AMCOM Spare Parts Manufacturer or Distributor SAR." Currently, there are no outstanding qualification requests on this item. However, this is a continuous method of identifying potential new sources of supply.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the coordination and approval document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

Technical Certification: I certify that the supporting data under my cognizance, which are included in this J&A are accurate and complete to the best of my knowledge and belief.

Name: Date: 23 January 2019

Title: Technical Loop Rep Signature: See attached

XIV. ATTACHMENTS:

1. Technical Certification, 26 October 2018

2. J&A Requirements Certification FY19, 30 September 2018